EURUSD falls before the results of the European Central Bank meeting
March 10, 2022
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EURUSD witnessed a decline in the European market after it recorded yesterday the highest daily…
EUR/AUD Breaks Above Key Downtrend Line After Australian Building Approvals Jump by 21.6%
EUR/AUD Forecast – 1st April 2021
Australia – Building Approvals
On Wednesday, at GMT 12:30 a.m., the Australian Bureau of Statistics released the national month-over-month building approvals figure. It measures the changes in the number of approvals of new buildings.
A building permit indicates new construction work. It also suggests that there would be additional positive economic activities. For example, new jobs would be created for construction workers. Therefore, top forex brokers in Australia consider this data regarding new building approvals to be a leading indicator of the overall economic health of the country.
Last month, the building approvals figure decreased by -19.4%. This month, analysts were expecting it to increase by 3.5%. However, the actual figure came much better, at 21.6%.
Eurozone – German Retail Sales
On Thursday, at GMT 6:00 a.m., the Destatis released the month-over-month German retail sales data. It measures the changes in the total value of sales at the retail level in the country.
The German economy makes up a large portion of the overall Eurozone economy. Retail sales act as a primary measurement of consumer spending and consumer confidence. Hence, Forex traders consider it to be an important fundamental indicator.
Last month, the German retail sales figure decreased by -4.5%. The forecast for this month was set at an increase of 0.4%. However, the actual figure came out much better, at 1.2%.
EUR/AUD Forecast
Since October 20, 2020, the EUR/AUD remained bearish. Over the last five month, it fell by around 1570 pips. However, after reaching the 1.5270 level in February 2021, it started to consolidate. Last week, the EUR/AUD broke above the downtrend line and tested the resistance near 1.560. Earlier today, it turned bullish. Currently, it is trading just below the 1.5600 level.
The Australian building approval figure unexpected went up to 21.6%. By contrast, the German retail sales also went much higher than what analysts were expecting. Nonetheless, the building approvals figure in Australia had a much higher percentage gain. We believe it would set a bullish fundamental outlook for the EUR/AUD this week. Therefore, if the EUR/AUD closes above the resistance near 1.5600, it would likely attract additional bullish momentum in the market.
Hence, CFD traders should look out for trading opportunities above this major resistance level around 1.5600.
Market Analyst / Trading Consultant . Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes about various tech and financial topics. You can reach him at contact@asifimtiaz.com
